Business
Updates re Joint Ventures and Associate Company
Updates re Joint Ventures and Associate Company.
About this update from Cloudcoco Group Plc
[{"type":"text","content":"\n \nRNS Number : 9121R Pinnacle Technology Group PLC 14 March 2016 \n\nPinnacle Technology Group plc \n(the \"Group\" or \"Pinnacle\") \n \nUpdates re Joint Ventures and Associate Company\n \nPinnacle Technology Group plc, the AIM listed provider of converged technology solutions, is pleased to provide updates in relation the Group's joint ventures and associate company, all of which demonstrate progress with the Company's strategy of simplifying its organisational structure and re-focusing the business on higher margin services to maximise earnings.\nJoint Ventures\nPinnacle is pleased to announce it has reached agreement with the shareholders of Accent Telecom North Limited (\"ATN\"), a company in which it holds a 30% stake, to acquire the remaining 70% of shares not held. \nATN has operated solely as a reseller of Accent Telecom UK (\"ATUK\"), a trading subsidiary of the Group engaged in providing telecoms services to businesses, for over 10 years under a business partnership agreement (\"BPA\"). Under the BPA, ATN received 80% of net profits generated by the customers introduced by it (\"Commission\") with the remaining 20% being retained by the Group. In the 12 months ended 31 January 2016 ATN earned £312,000 in Commission from ATUK under the BPA. The cash consideration payable by Pinnacle for the remaining 70% shareholding is £586,000, of which £326,000 was paid on completion (£66,000 of which effectively represents Commission earned not yet paid at completion). The remaining £260,000 is payable in March 2017. ATN is now a wholly owned subsidiary of the Group and all net profit earned from its customers will be retained by the Group.\nA similar, albeit less formal, arrangement, existed in relation to a number of customers serviced by Pinnacle in the Midlands. An introducer of business had a contractual arrangement in force which resulted in a similar commission structure, and under which the Group paid Commission of £84,000 in the 12 months ended 31 January 2016. An agreement has been reached with the introducer whereby the Group has paid a final settlement of £70,000 in order to buy this introducer out of the right to future commission payments. The customers introduced under this arrangement remain with the Group.\nFollowing these transactions Pinnacle has only one remaining...